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Essentials of Services Marketing,
2nd Edition
Instructor Supplement
Designing and Managing Service Processes
Pearson Education South Asia Pte Ltd 2013. All rights reserved
Chapter 8 Outline
8.1
8.2
8.3
8.4
8.5
Flowcharting Service Delivery

Use Blueprinting to Document and Manage Service Processes
Service Process Redesign
The Customer as Co-Creators
Self-Service Technologies
8.1
Flowcharting Service Delivery
8.1
8.1 Flowcharting Service Delivery

Insights from Flowcharting
Technique for displaying the nature and sequence of the different

steps in delivery service to customers
Offers way to understand total customer service experience
Shows how nature of customer involvement with service

organizations varies by type of service:
People processing
Possession processing
Mental Stimulus processing
Information processing
Simple Flowchart for Delivery of a People-Processing Service

(Fig. 8.1a)
Simple Flowchart for Delivery of a Possession-Processing

Service (Fig. 8.1b)
Simple Flowchart for Delivery of a Mental Stimulus Processing

Service (Fig. 8.1c)
Simple Flowchart for Delivery of a Information-Processing

Service (Fig. 8.1d)
10 Pearson Education South Asia Pte Ltd 2013. All rights reserved
8.2
Use Blueprinting to Document and Manage Service
Processes
8.2
8.2 Use Blueprinting to Document and Manage

Service Processes
Blueprinting
Developing a Blueprint
- Identify key activities in creating and delivering service
- Define big picture before drilling down to obtain a higher level
of detail
Advantages of Blueprinting
- Distinguish between frontstage and backstage
- Clarify interactions between customers and staff, and support by
backstage activities and systems
- Identify potential fail points; take preventive measures; prepare
contingency
- Pinpoint stages in the process where customer commonly have
to wait

Service Processes
Key Components of a Service Blueprint
1.
2.
3.
4.
5.
6.
7.
8.
9.
Define standards for front-stage activities

Specify physical evidence
Identify main customer actions
Line of interaction (customers and front-stage personnel)
Frontstage actions by customer-contact personnel
Line of visibility (between front stage and backstage)
Backstage actions by customer contact personnel
Support processes involving other service personnel
Support processes involving IT
- Identify fail points and risks of excessive waits
- Set service standards and do failure-proofing

Service Processes
Blueprinting the Restaurant Experience: Act 1
(Fig. 8.5)

Service Processes
Blueprinting The Restaurant Experience: A Three-Act
Performance
Act 1: Introductory Scenes
Act 2: Delivery of Core Product

Cocktails, seating, order food and wine, wine service
Potential fail points: Menu information complete? Menu
intelligible? Everything on the menu actually available?
Mistakes in transmitting information a common cause of quality
failure e.g. bad handwriting; poor verbal communication
Customers may not only evaluate quality of food and drink, but
how promptly it is served, serving staff attitudes, or style of
service
Act 3: The Drama Concludes

Remaining actions should move quickly and smoothly, with no
surprises at the end
Customer expectations: accurate, intelligible and prompt bill,
payment handled politely, guests are thanked for their patronage

Service Processes
Improving Reliability of Processes by Failure
Proofing
Identify fail points

Analysis of reasons for failure often reveals opportunities for failure
proofing to reduce/eliminate future risk of errors
Need fail-safe methods for both employees and customers
Have poka-yokes to ensure service staff do things correctly, as
requested, or at the right speed
Customer poka-yokes focus on preparing the customer for:
The encounter
Understanding and anticipating their roles
Selecting the correct service or transaction
See Service Insights 8.1 Framework to prevent customer failures

Service Processes
Improving Reliability of Processes by Failure
Proofing
Identify fail points

Analysis of reasons for failure often reveals opportunities for failure
proofing to reduce/eliminate future risk of errors
Need fail-safe methods for both employees and customers
Have poka-yokes to ensure service staff do things correctly, as
requested, or at the right speed
Customer poka-yokes focus on preparing the customer for:
The encounter
Understanding and anticipating their roles
Selecting the correct service or transaction
See Service Insights 8.1 Framework to
prevent customer failures
8.3
Service Process Redesign
8.3
8.3 Service Process Redesign

Why Redesign? (1)
Institutions are like steel beamsthey tend to rust. What was
once smooth and shiny and nice
tends to become rusty.
Mitchell T. Rabkin MD,
formerly president of
Bostons Beth Israel Hospital

Why Redesign? (2)
Revitalizes process that has become outdated
Changes in external environment make existing practices obsolete

and require redesign of underlying processes
Creation of brand-new processes to stay relevant

Why Redesign? (3)
Rusting occurs internally

Natural deterioration of internal processes; creeping bureaucracy;
evolution of spurious, unofficial standards
Symptoms:
Extensive information exchange
Data that is not useful
High ratio of checking or control activities to value-adding
activities
Increased exception processing
Customer complaints about inconvenient and unnecessary
procedures

Process Redesign: Approaches and Potential Benefits
Examining service blueprint with key stakeholders
Eliminating non-value-adding steps

Simplify front-end and back-end processes with goal of focusing
on benefit-producing part of service encounter
Get rid of non-value adding steps
Improve productivity and customer satisfaction
Shifting to self-service
Increase in productivity and service quality
Lower costs
Enhance technology reputation
Differentiates company
8.4
The Customer as Co-Creators
8.4
8.4 The Customer as Co-Creators

Levels of Customer Participation (1)
Customer Participation
Actions and resources supplied by customers during service

production and/or delivery
Includes mental, physical, and even emotional inputs

Levels of Customer Participation (2)
3 levels
Low Employees and systems do all the work
Often involves standardized service

Medium Customer helps firm create and deliver service
Provide needed information and instructions
Make some personal effort; share physical possessions

High Customer works actively with provider to co-produce the service
Service cannot be created without customers active participation
Customer can jeopardize quality of service outcome (e.g. weight loss,

marriage counseling)

Customers as Service Co-Creators
Customers can influence productivity and quality of service

processes and outputs
Customers not only bring expectations and needs, they also need to
have relevant service production competencies
Customers also need to be recruited as they are partial

employees. Firms need to get those with the skills to do the tasks
For the relationship to last, both parties need to cooperate with

each other
8.5
Self-Service Technologies
8.5
8.5 Self-Service Technologies

Self-Service Technologies (SSTs)
Ultimate form of customer involvement

Customers undertake specific activities using facilities or systems
provided by service supplier
Customers time and effort replace those of employees
Information-based services can easily be offered using SSTs

Used in both supplementary services and delivery of core product
e.g. Internet-based services, ATMs, self-service gasoline pumps
e.g. eBay no human auctioneer needed between sellers and

buyers
Many companies seek to encourage customers to serve themselves

using Internet-based self-service
Challenge: getting customers to try this technology

What Aspects Of SSTs Please Or Annoy Customers?
(1)
People love SSTs when
SST machines are conveniently located and accessible 24/7

often as close as nearest computer!
Obtaining detailed information and completing transactions can

be done faster than through face-to-face or telephone contact
People in awe of what technology can do for them when it works

well
People hate SSTs when
SSTs fail system is down, PIN numbers not accepted, etc
Poorly designed technologies that make service processes

difficult to understand and use
they mess up - forgetting passwords; failing to provide

information as requested; simply hitting wrong buttons

What Aspects Of SSTs Please Or Annoy Customers?
(2)
Key weakness of SSTs: Too few incorporate service recovery

systems
Customers still forced to make telephone calls or personal visits

Putting SSTs to Test by Asking a Few Simple
Questions
Does the SST work reliably?
Is the SST better than interpersonal alternatives?
Firms must ensure that SSTs are dependable and user-friendly
Customers will stick to conventional methods if SST doesnt

create benefits for them
If it fails, what systems are in place to recover?
Always provide systems, structures, and technologies that will

enable prompt service recovery when things go wrong
Summary for Chapter 8 Designing and Managing

Service Processes (1)
Flowcharting helps clarify delivery elements. It also shows how

nature of customer involvement with service organizations varies by
type of service

Service blueprinting can be used to design a service and create a

satisfying experience for customers. Key components of the blueprint
include
Definition of standards for each front-stage activity
Physical and other evidence for front-stage activities
Principal customer actions
Line of interaction
Front-stage actions by customer-contact personnel
Line of visibility
Backstage actions by customer-contact personnel
Support processes involving other service personnel
Support processes involving information technology

Blueprinting a restaurant (or other service) can be a three-act

performance
Prologue and introductory scenes
Delivery of the core product
Conclusion of the drama
Failure proofing can be designed into service processes to improve

reliability
Service process redesign can be categorized into five kinds
Examining the service blueprint with key stakeholders
Eliminating non-value-adding steps
Shifting to self-service

When the customer is a co-producer, issues to consider are
Levels of customer participation
Customers as service co-creators
When deciding to use Self-service Technologies (SSTs), firms should

consider
Psychological factors related to the use of SSTs
Aspects of SSTs that please or annoy customers
Thank you

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Essentials of Services Marketing,

Designing and Managing Service Processes

Flowcharting Service Delivery

8.1 Flowcharting Service Delivery

Technique for displaying the nature and sequence of the different

Offers way to understand total customer service experience

Shows how nature of customer involvement with service

8.1 Flowcharting Service Delivery

Simple Flowchart for Delivery of a People-Processing Service

8.1 Flowcharting Service Delivery

Simple Flowchart for Delivery of a Possession-Processing

8.1 Flowcharting Service Delivery

Simple Flowchart for Delivery of a Mental Stimulus Processing

8.1 Flowcharting Service Delivery

Simple Flowchart for Delivery of a Information-Processing

8.2 Use Blueprinting to Document and Manage

8.2 Use Blueprinting to Document and Manage

Define standards for front-stage activities

8.2 Use Blueprinting to Document and Manage

8.2 Use Blueprinting to Document and Manage

Act 1: Introductory Scenes

Act 2: Delivery of Core Product

Act 3: The Drama Concludes

8.2 Use Blueprinting to Document and Manage

Identify fail points

8.2 Use Blueprinting to Document and Manage

Identify fail points

8.3 Service Process Redesign

8.3 Service Process Redesign

Revitalizes process that has become outdated

Changes in external environment make existing practices obsolete

8.3 Service Process Redesign

Rusting occurs internally

8.3 Service Process Redesign

Examining service blueprint with key stakeholders

Eliminating non-value-adding steps

8.4 The Customer as Co-Creators

Actions and resources supplied by customers during service

Includes mental, physical, and even emotional inputs

8.4 The Customer as Co-Creators

Often involves standardized service

Provide needed information and instructions

Make some personal effort; share physical possessions

Service cannot be created without customers active participation

Customer can jeopardize quality of service outcome (e.g. weight loss,

8.4 The Customer as Co-Creators

Customers can influence productivity and quality of service

Customers also need to be recruited as they are partial

For the relationship to last, both parties need to cooperate with

8.5 Self-Service Technologies

Ultimate form of customer involvement

Information-based services can easily be offered using SSTs

e.g. Internet-based services, ATMs, self-service gasoline pumps

e.g. eBay no human auctioneer needed between sellers and

Many companies seek to encourage customers to serve themselves

8.5 Self-Service Technologies

People love SSTs when

SST machines are conveniently located and accessible 24/7

Obtaining detailed information and completing transactions can

People in awe of what technology can do for them when it works

People hate SSTs when

SSTs fail system is down, PIN numbers not accepted, etc

Poorly designed technologies that make service processes

they mess up - forgetting passwords; failing to provide

8.5 Self-Service Technologies

Key weakness of SSTs: Too few incorporate service recovery